There are many myths surrounding credit scores.Many people believe that once a past due account is paid off that it will be off their credit report It doesn’t matter if it is paid the fact that it was late is still reported. Once you pay a past due debt it will show that it is paid, but it will still have a negative impact on your credit report.Here is another myth about credit score bankruptcy.Many people believe that once they have filed for credit bankruptcy or had a home foreclosed that it will forever be a part of their credit history. There are ways to get this information erased from you credit report. One way to get foreclosures and bankruptcy deleted is by going to a company that provides these services.
A third myth regarding credit score bankruptcy:
Many people think that it is easy to dispute something on a credit report and get it deleted. While the disputing the listing part may be easy, it is not so simple to actually get the negative credit listing removed from your credit report completely. Luckily, there are companies that specialize in credit repair that can make things easier.
A fourth credit score bankruptcy myth:
Many people have the false belief that once they file bankruptcy their negative listings will completely disappear from their credit report, but in reality each item that was included in the bankruptcy will say “Included in Bankruptcy.” This could lead to your credit report showing negative things for over ten years, and then the whole point of filing bankruptcy is completely lost.
Another credit score myth:
Many people believe that when they close their credit card accounts their credit score will go up/ In reality credit cards give you access to instant credit that you lost when you close the credit card account. This means that when the accounts get closed your credit score will be hurt. If you keep your accounts within 35% of the balance then the open accounts will actually help improve your credit score, but do not max the cards out. Remember, you always have to pay your accounts on time.